ESPN Wants To Pay For Your Wireless Data Plan

5/10/2013 9:10AM

ESPN plans talks with wireless carriers to help subsidize the wireless-data plans of its customers, who often deplete their monthly allotment while watching programming and sporting events. Amol Sharma has exclusive details.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... we're consuming more content on our smartphones every year that goes fine ... subtly the business of getting the content to S ... AB changing in a Wall Street Journal exclusive ... of all Star reports that ESPN ... has had discussions with at least one wireless carrier to subsidize wireless service for its users ... with the implications for smaller companies that can pay and for consumers ... mall joins me now ... morning good morning great story ... thank you so ... just stare with the basics what has ESPN discussed in the room ... basically what ESPN is is looking at potentially is picking up ... some of the tab for wireless data use ... so right now consumers pay ... for their monthly data ... dull with a wireless carrier in eighteen sixty dollars to ever for the phone for the smartphone if you're an initial plan in a year buying another forty box ... for year two gigs or whatever and data exactly and so that's the key is if you go when the eggs you get hit with an overcharged ... and and that people monitor them they don't wanna do that they don't wanna ... go that women somewhat this to mean is that ... the kids and went through with this ... you can be watching ESPN video from a tablet or phone or are using an app that shows you live TV for example ... I knew this would have to worry about going over that limit the damage it hired outside they would pay to make sure that their content is special but it wouldn't tell ... us yesterday to cap exactly and so ... it why would they do this well they do this because there's a huge potential upside for them ... if say today people are throttling back to his dubious money they are doing well us when heard from at least one carrier that this was happening but mid month people are dropping out of stopping ... his ESPN because of the cat ... some an African woman will even some I am a table member they make money off the ads that the show on mobile sites ... and apps ... so they they said well ... there might be economics here to work if we can pay up front ... to allow those people to use it more and we make about finance and by making those economics work is top that's what has happened in the other companies of what that of the same issue Penney said also owes you mention your story that ... you'll on the other hand the nation should be BP because ... we're actually helping the wireless carriers for encouraging people to consume more data so they should be thanking us for I am it's a question of leverage their argument is as you said what were the poll here where you're signing up subs subscribers because of us ... the wireless carriers say listen this is a ... band with constrained world the rise of online but here's the data through our networks ... yet a helpful some weight here so ... now this place in the face of net neutrality ... with broadband was here with Rick eventually when it comes in your home they think is your conventional Internet connection ... it's the FCC doesn't allow ... carriers to charge said to favor related to charge anyone a toll ... on to deliver content by that line the wireless is different ... right they made a clear distinction FCC when they set out these rules between wireline broadband ... which has that ... I've that rule but you have to trade all Internet traffic equally ... present in wireless from that ... so really when you look at its hard to see how those rules would apply in this situation and kind of deal ESPN is considering but ... some of the people I talk to so there's still concern that the PSP had the SCC left open the possibility of revisiting the topic ... and monitoring market with all that probably monitor something as big as this happened ok and and to what the implications for start-ups because ESPN ... most profitable part of Disney ... huge company is tons of money ... Pandora ... startup you can still lots of detail when you listen to Pandora via your network is opposed to buy a why Fi ... you know when a company like Pandora Media Ted the throttle but users right aam ... the little bit to control their own costs ... helped startups compete ... I think you know that that is one of the main question Sears them is me market competition than can smaller companies that work it out ... but there are other models of doing this decided to buy bandwidth upfront which is one idea that ... he is being considered but a few big ideas display ad revenue ... between carriers and content companies which would mean he had a big Dell upfront if you are the ... content provider ... dynamic deal easier for startups to handle you just be safely make more money out for this summer because the character still implications but maybe not as much as you explore plenty of them a lot more of them in your great story which I should tell viewers is on the one of today's Journal so be sure ... to check that out the the the whole thing